“In an attempt to change the subject from the dismal jobs market” yesterday, President Obama once again called for a tax hike on more than 900,000 American small businesses. The president’s push is bad news for the more than 20 million unemployed and underemployed Americans, who – in the president’s own words – will face “smaller paychecks” and “fewer jobs” as a result of the tax hike. Economists agree, warning that the president’s push for higher taxes would be a “blow” to the “already shaky” economy. Here’s more:
- “Carl Riccadonna, senior U.S. economist with Deutsche Bank, said the most important thing to do is to not re-impose any of the taxes when economic growth and hiring are still so weak.” (CNNMoney, 7/9/12)
- “The lower rates expire for all Americans at the end of the year, and many economists worry that failure to agree on some form of extension…would be a blow to the economy.” (The Wall Street Journal, 7/9/12)
- “Economists worry that across-the-board tax increases…could be a blow to the shaky US economy.” (Associated Press, 7/9/12)
- “And the president still has nothing to say about so-called ‘Taxmageddon,’ the fiscal cliff that awaits next year as the Bush tax cuts end. That event will result in $500 billion in tax hikes by the end of this year, which most economists believe will plunge the economy back into recession.” (Investor’s Business Daily, 7/9/12)
- “In addition to slower global growth and less spending by U.S. consumers, many companies worry that U.S. lawmakers won’t extend a package of tax cuts at the end of the year. Bricklin Dwyer, an economist at BNP Paribas, said the uncertainty ‘has left businesses unwilling to invest.’” (The Associated Press, 7/2/12)
- “Economists worry that the tax cuts, combined with the automatic across-the-board spending cuts set to take place unless Congress finds offsets, would amount to a one-two punch to the already shaky U.S. economy.” (The Washington Times, 7/9/12)
Given the disastrous impact the president’s plan would have on the economy, it’s not surprising that even members of his own party are refusing to go along with his small business tax hike scheme. While Democrats are divided, Republicans are unified in their support for stopping the tax hike and creating an environment where small businesses can grow and hire more workers. Learn more about what Republicans are doing to help the private sector create badly-needed jobs at jobs.gop.gov.